New Perspective on the ‘Net Errors and Omissions’ in Balance of Payment Accounts: An Empirical Study in Australia

Tuck Cheong Tang ()

Asian Academy of Management Journal of Accounting and Finance (AAMJAF), 2017, vol. 13, issue 2, 27-44

Abstract: This study explores the macroeconomic determinants of the ‘net errors and omissions’ behaviour in balance of payment accounts. Two empirical equations are being estimated as suggested by the balance of payments constraint, and income-expenditure approach, respectively. This study finds that GDP, interest rate, and exchange rate are the important factors explaining the Australian ‘net errors and omissions’. Causality tests have recognized the possible transmission channels. This study can be considered a new perspective in this topic and reference for further research.

Keywords: Australia; balance of payment; balancing item; causality; net errors and omissions (search for similar items in EconPapers)
Date: 2017
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